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Note 8 - Income Taxes | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 8. INCOME TAXES Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities are provided to record the effects of temporary differences between the tax basis of an asset or liability and its amount as reported in our consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. The components comprising our deferred income tax assets and liabilities are as follows:
|  | December 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Deferred income tax assets |  |  |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | 117,564 |  |  | $ | 95,861 |
State net operating loss carryforwards |  |  | 68,925 |  |  |  | 67,357 |
Operating lease liability |  |  | 199,083 |  |  |  | 198,800 |
Share-based compensation |  |  | 11,276 |  |  |  | 15,029 |
Other |  |  | 60,895 |  |  |  | 60,540 |
Gross deferred income tax assets |  |  | 457,743 |  |  |  | 437,587 |
Valuation allowance |  |  | (50,548 | ) |  |  | (41,281 | )
Deferred income tax assets, net of valuation allowance |  |  | 407,195 |  |  |  | 396,306 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Difference between book and tax basis of property and intangible assets |  |  | 295,343 |  |  |  | 311,365 |
State tax liability |  |  | 41,028 |  |  |  | 45,314 |
Right of use asset |  |  | 195,038 |  |  |  | 194,874 |
Other |  |  | 6,838 |  |  |  | 7,448 |
Gross deferred income tax liabilities |  |  | 538,247 |  |  |  | 559,001 |
Deferred income tax liabilities, net |  | $ | 131,052 |  |  | $ | 162,695 |
At December 31, 2020, we have unused federal general business tax credits of approximately $15.6 million which may be carried forward or used until expiration beginning in 2036. We have a federal income tax net operating loss of approximately $559.8 million, which may be carried forward or used until expiration beginning in 2034, assuming no significant change in ownership. We also have state income tax net operating loss carryforwards of approximately $1,088.5 million, which may be used to reduce future state income taxes. The state net operating loss carryforwards will expire in various years ranging from 2021 to 2040, if not fully utilized. Valuation Allowance on Deferred Tax Assets Management assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. In evaluating our ability to recover deferred tax assets, we consider whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. We have maintained a valuation allowance against certain federal and state deferred tax assets as of December 31, 2020 due to uncertainties related to our ability to realize the tax benefits associated with these assets. The balance of this valuation allowance is $50.5 million as of December 31, 2020. This is an increase of $9.2 million from the prior year resulting from current year losses. In assessing the need to establish a valuation allowance, we consider, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of profitability and taxable income, the duration of statutory carryforward periods, our experience with the utilization of operating loss and tax credit carryforwards before expiration and tax planning strategies. Valuation allowances are evaluated periodically and subject to change in future reporting periods as a result of changes in the factors noted above. Provision (Benefit) for Income Taxes A summary of the provision (benefit) for income taxes is as follows:
|  | Year Ended December 31, |
(In thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | (584 | )
State |  |  | (58 | ) |  |  | 3,475 |  |  |  | 5,897 |
Total current taxes provision (benefit) |  |  | (58 | ) |  |  | 3,475 |  |  |  | 5,313 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (35,231 | ) |  |  | 44,877 |  |  |  | 29,434 |
State |  |  | (1,025 | ) |  |  | (3,862 | ) |  |  | 5,584 |
Total deferred taxes provision (benefit) |  |  | (36,256 | ) |  |  | 41,015 |  |  |  | 35,018 |
Provision (benefit) for income taxes from continuing operations |  | $ | (36,314 | ) |  | $ | 44,490 |  |  | $ | 40,331 |
Provision (benefit) for income taxes included on the consolidated statement of operations |  |  |  |  |  |  |  |  |  |  |  |
Provision (benefit) for income taxes from continuing operations |  | $ | (36,314 | ) |  | $ | 44,490 |  |  | $ | 40,331 |
Provision for income taxes from discontinued operations |  |  | — |  |  |  | — |  |  |  | 136 |
Provision (benefit) for income taxes from continuing operations and discontinued operations |  | $ | (36,314 | ) |  | $ | 44,490 |  |  | $ | 40,467 |
The following table provides a reconciliation between the federal statutory rate and the effective income tax rate, expressed as a percentage of income (loss) from continuing operations before income taxes:
|  | Year Ended December 31, |
(In thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Tax at federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 0.5 | % |  |  | (0.2 | )% |  |  | 5.9 | %
Compensation-based credits |  |  | 0.6 | % |  |  | (1.2 | )% |  |  | (1.9 | )%
Nondeductible expenses |  |  | (0.4 | )% |  |  | 0.4 | % |  |  | 0.7 | %
Tax exempt interest |  |  | 0.2 | % |  |  | (0.2 | )% |  |  | (0.2 | )%
Company provided benefits |  |  | (1.3 | )% |  |  | 1.6 | % |  |  | 0.1 | %
Other, net |  |  | 0.6 | % |  |  | 0.4 | % |  |  | 0.4 | %
Effective tax rate |  |  | 21.2 | % |  |  | 21.8 | % |  |  | 26.0 | %
Our tax benefit for the year ended December 31, 2020 was favorably impacted by state audit settlements in connection with our Louisiana tax examinations and the realization of certain unrecognized tax benefits, inclusive of the reversal of related accrued interest. Our tax benefit was also favorably impacted by benefits related to equity compensation and tax credits and unfavorably impacted by nondeductible expenses. Our tax provision for the year ended December 31, 2019 was favorably impacted by benefits related to equity compensation and tax credits and unfavorably impacted by non-deductible expenses. Our tax provision for the year ended December 31, 2018 was unfavorably impacted by state taxes and certain nondeductible expenses which were partially offset by utilization of tax credits. Status of Examinations We generated net operating losses on our federal income tax returns for years 2011 through 2013. These returns remain subject to federal examination until the statute of limitations expires for the year in which the net operating losses are utilized. We are also currently under examination for various state income tax matters. As it relates to our material state returns, we are subject to examination for tax years ended on or after December 31, 2011. The statute of limitations will expire over the period October 2021 through October 2024. We believe that we have adequately reserved for any tax liability; however, the ultimate resolution of these examinations may result in an outcome that is different than our current expectation. We do not believe the ultimate resolution of these examinations will have a material impact on our consolidated financial statements. Other Long-Term Tax Liabilities The impact of an uncertain income tax position taken in our income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. Our liability for uncertain tax positions is recorded as other long-term tax liabilities in our consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Year Ended December 31, |
(In thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Unrecognized tax benefit, beginning of year |  | $ | 2,482 |  |  | $ | 2,482 |  |  | $ | 2,482 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions related to current year |  |  | — |  |  |  | — |  |  |  | — |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions related to prior years |  |  | (2,482 | ) |  |  | — |  |  |  | — |
Unrecognized tax benefit, end of year |  | $ | — |  |  | $ | 2,482 |  |  | $ | 2,482 |
During the third quarter of 2020, we settled our Louisiana tax audits for the years ended 2001 through 2009. As a result of the resolution of theses audits, we reduced our unrecognized tax benefits by $2.5 million of which $2.0 million impacted our effective tax rate. We reversed the accrual of interest related to unrecognized tax benefits in our income tax provision. There is no accrual required for interest and penalties at December 31, 2020. We accrued $1.1 million of interest and penalties at December 31, 2019 in our consolidated balance sheet. We do not anticipate any material changes to our unrecognized tax benefits over the next twelve-month period.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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